Fixed Deposit is a financial tool that lets you earn on your saving over a certain period of time. Under the fixed deposit scheme, the investor deposits a certain amount of money into the account for a period of time and earns interest on the same. There are different types of fixed deposit accounts including senior citizen fixed deposits and NRI fixed deposit accounts. Most of the banks in India offer fixed deposit accounts to NRIs (Non Resident Indians). NRIs fixed deposit account is similar to regular fixed deposit accounts except for the interest rates and certain features and benefits.
Given below is a comparison of fixed deposit interest rates from the top banks in India for 2016.
|Bank||NRE Interest rates|
|United Bank of India||8.75%|
|The Ratnakar Bank||8.25%|
|Bharat Co-operative Bank||8.25%|
|Oriental Bank of Commerce||8.00%|
|Indus Ind Bank||8.00%|
|Lakshmi Vilas Bank||7.80%|
|Shamrao Vithal Co-operative Bank||7.80%|
|State Bank of Patiala||7.77%|
|Union Bank of India||7.65%|
|Central Bank of India||7.50%|
|State Bank of India||7.50%|
|Bank of India||7.30%|
A NRI can open fixed deposit accounts. There are three types of NRI Fixed Deposit accounts with banks that are authorized to deal in foreign exchange in India. An NRI fixed deposit account can be opened through three different types of accounts in India. Given below are the three types of NRI fixed deposit accounts.
Listed below are the factors that affect the NRI Fixed Deposit interest rates.
The income earned in the form of interest from the NRE accounts are tax free in their hands. There is no taxation on the interest that is earned here and for this reason there will also not be any Tax Deducted at Source (TDS) on the income earned here.
Given below is the eligibility criteria that one has to fulfil in order to qualify for a NRI fixed deposit.
Listed below are the various benefits of investing in NRI fixed deposits over a regular savings account.
Updated on August ‘16